Buying stocks bid and ask price

Buying stocks bid and ask price

Posted: Kass On: 15.07.2017

How do bid-ask prices work in stock trading? - Motley Fool Answers

The Bid is the price at which a broker will buy your current day trading position from you. The Ask is the price at which the broker will sell you the position you require.

buying stocks bid and ask price

The gap between the bid and the ask depends on many and varied factors, such as how much liquidity the instrument has, how volatile the general day trading market is, the ratio of day trading buyers vs sellers and so on. This is why prices you see will have 2 numbers which you can see on your day trading computer - for example the price of IBM might be quoted as - This means that if you want to day trade IBM and want to BUY a single share, it will cost you dollars, but if you want to SELL a share, you will only get dollars for it.

In the morning papers, usually only 1 price is shown, and this is the MID price the middle between the bid and ask.

buying stocks bid and ask price

Day trading Spread betting companies make their living doing forex london open breakout system this one trick, and have wider spreads between the buying stocks bid and ask price and ask than ordinary brokers, in order to make up for the absence of commission charges. Note - the "Best Bid" for a stock is usually taken to mean the highest price that a day trader buyer is willing to pay for that stock at any particular point in time.

The "Best Ask" is the lowest price that a day trader seller is willing to accept for a stock at that time. A Bid is made up of a Buy Limit Order that has been put into the market.

buying stocks bid and ask price

An Ask is made up of an open Sell Limit Order. Bid and Ask in Day Trading The Bid is the price at which a broker will buy your current day trading position from you.

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